Gentherm (NASDAQ:THRM) Downgraded to Buy Rating by Wall Street Zen

Gentherm (NASDAQ:THRM) was downgraded by equities researchers at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research note issued on Saturday.

A number of other research analysts also recently weighed in on THRM. Roth Mkm reiterated a “buy” rating and issued a $44.00 price objective on shares of Gentherm in a research report on Friday, October 24th. Weiss Ratings downgraded Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 9th. Finally, Robert W. Baird dropped their price objective on shares of Gentherm from $42.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $41.00.

Gentherm Stock Up 8.9%

Shares of THRM stock opened at $34.11 on Friday. The stock’s fifty day moving average price is $35.58 and its 200 day moving average price is $35.56. Gentherm has a 1-year low of $22.75 and a 1-year high of $39.48. The company has a market cap of $1.04 billion, a price-to-earnings ratio of 55.92 and a beta of 1.34. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.92 and a quick ratio of 1.33.

Gentherm (NASDAQ:THRM) last issued its quarterly earnings results on Thursday, February 19th. The auto parts company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.15). The business had revenue of $382.79 million during the quarter, compared to analyst estimates of $371.91 million. Gentherm had a return on equity of 10.07% and a net margin of 1.22%.Gentherm’s revenue was up 8.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.29 EPS. On average, research analysts expect that Gentherm will post 3.1 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Allworth Financial LP lifted its holdings in Gentherm by 1,609.1% in the 2nd quarter. Allworth Financial LP now owns 940 shares of the auto parts company’s stock worth $27,000 after buying an additional 885 shares in the last quarter. Hantz Financial Services Inc. boosted its position in Gentherm by 16,716.7% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,009 shares of the auto parts company’s stock valued at $29,000 after purchasing an additional 1,003 shares during the period. Farther Finance Advisors LLC grew its stake in Gentherm by 160.3% during the 4th quarter. Farther Finance Advisors LLC now owns 812 shares of the auto parts company’s stock worth $30,000 after buying an additional 500 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in Gentherm in the fourth quarter worth $35,000. Finally, Nisa Investment Advisors LLC lifted its stake in Gentherm by 295.4% in the second quarter. Nisa Investment Advisors LLC now owns 1,364 shares of the auto parts company’s stock valued at $39,000 after buying an additional 1,019 shares during the last quarter. Hedge funds and other institutional investors own 97.13% of the company’s stock.

Key Headlines Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Reported record 2025 product revenue of ~$1.5B, increased operating cash flow, reduced net leverage to ~0.2x and secured $2.2B of automotive new business — management also issued 2026 product‑revenue guidance of $1.5B–$1.6B and a preliminary ~ $1.7B outlook for 2027, which supports growth expectations. Press Release
• Positive Sentiment: Some market commentators and outlets highlight the revenue beat and upbeat guidance as a catalyst for upside. Investing.com
• Positive Sentiment: Freedom Capital Markets initiated coverage with a Buy rating (adds institutional endorsement and may help demand). Coverage Note (MSN summary)
• Positive Sentiment: Analyst/commentary pieces argue the company’s transformation and new product momentum support upgrades from some investors. Seeking Alpha
• Neutral Sentiment: Earnings call transcript and the investor slide deck are available for deeper detail on assumptions, FX exposure and margin drivers — useful for assessing the credibility of guidance and FY2026 assumptions. Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Short‑interest notes in the feed show inconsistent/zero values (likely data error) — no clear short pressure signal from these entries. (No reliable link provided)
• Negative Sentiment: GAAP profitability weakened: Q4 GAAP diluted EPS of $0.10 (FY GAAP diluted $0.59) and net income declined year‑over‑year — investors concerned about margin compression from higher material costs and footprint realignment. Press Release
• Negative Sentiment: Q4 adjusted EPS dynamic: the company reported adjusted EPS improvements but missed street GAAP/quarterly EPS consensus ($0.49 vs. estimate ~$0.64), which is a short‑term negative surprise for some investors. Zacks

Gentherm Company Profile

Gentherm Incorporated (NASDAQ: THRM) is a global developer and supplier of advanced thermal management technologies for automotive, specialty vehicle, medical, consumer and industrial markets. The company’s core focus lies in delivering integrated heating and cooling systems designed to enhance energy efficiency, comfort and safety across a wide range of applications. Gentherm’s product portfolio includes seat thermal systems, heated and ventilated seating surfaces, steering wheel heaters, battery thermal management solutions, and climate systems for electric vehicles.

In the automotive sector, Gentherm partners with leading original equipment manufacturers to engineer and manufacture high-performance thermal solutions that meet stringent industry demands for reduced weight, lower energy consumption and improved passenger comfort.